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PN 30/05 | 21 November 2005 |
Ofwat consults on plans to strengthen compensation for sewer-flooded customers |
Plans to strengthen protection for customers who suffer sewer flooding in England and Wales are set out in a consultation paper published today by Ofwat.
The proposals would improve the Guaranteed Standards Scheme (GSS) by extending it to:
- Require sewerage companies to pay a minimum of £150 for every internal sewer flooding incident; and
- Include external flooding incidents, for which payment levels would be 50% of a customer's annual sewerage charge for each incident.
The proposals also set out guidelines based on current industry best practice for providing practical and financial help to sewer-flooded customers.
The GSS would also be updated to cover service complaints or account queries made by phone, to reflect the fact that more customers now choose to contact their company by phone.
The recommended improvements follow an Ofwat review of the current GSS system.
Philip Fletcher, Director General of Water Services, said:
"GSS payments can never fully compensate customers for the problems they experience when their homes are flooded with sewage. These payments are not designed to take the place of insurance, but they are a recognition of service failure.
"Our research has shown that compensation is not always the main priority for customers affected by sewer flooding. They also value a quick response from their sewerage company and assistance with cleaning up. The proposed guidelines would enable sewerage companies to act as a good neighbour and offer customers help and support when sewer flooding does occur.
"We expect companies to deal with all customer enquiries and complaints promptly and effectively. The GSS scheme is there to help customers when things go wrong."
Notes to Editors:
1. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them.
2. The Guaranteed Standards Scheme (GSS) sets out common minimum standards that water companies must meet in a range of customer services.
3. The maximum payment level for each sewer flooding incident under GSS is £1,000.
4. Over the last two years an average £1.5 million has been paid out each year by sewerage companies for sewer flooding incidents. This covers payments made under GSS, enhanced GSS and customer charter schemes.
5. In 2003-04 and 2004-05 there were on average 4,600 internal sewer flooding incidents each year.
6. Price limits set by Ofwat last year will enable sewerage companies to invest nearly £1 billion to tackle the worst cases of sewer flooding between 2005-10.
7. The consultation paper, 'Dealing with customers affected by sewer flooding and the guaranteed standards scheme – a review' will available on the Ofwat website, www.ofwat.gov.uk, and from the Ofwat Library on 0121-625 1373.
MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442
Out of hours enquiries to pager: 08700 555 500 water 502/503. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk
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